TNAG-2674-FCO40-3871-Hong-Kong-garrison-withdrawal-plan-1993 — Page 111

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5.

We

In these circumstances, we need to play our hand

carefully. We can offer to support with the MOD the Governor's general point that the costs of the garrison

must be seen to fall if LegCo are to vote Hong Kong's

share in the current political climate in Hong Kong.

will have an opportunity to do this by chipping in a

comment from the Secretary of State on Mr Rifkind's

letter. I understand that Sir T Daunt has also offered to

pursue with the MOD the examples of conspicuous

consumption by the garrison set out in paragraph 7(b) of the Governor's telegram. We can encourage the MOD and HKG

to look for early savings in support costs, which is

likely to be the key to this exercise. But we should stay

out of arguments over HKG's specific liabilities under the

Defence Costs Agreement, and also the Governor's

suggestion that the garrison should move on to

unaccompanied terms. I doubt that the Governor's further

suggestion that one of the battalions should be deployed

away from Hong Kong, eg on peacekeeping is a starter. I see no harm in floating it with the MOD.

6.

But

The Governor's telegram also downplayed any possible role for the garrison, and overlooked the Chinese

dimension. We have stimulated the attached comment on the

latter point for Sir R McLaren.

7.

All these points are wrapped up in the draft reply. It will not be wholly satisfactory to the Governor. If he

really wants significant savings more quickly, he will have to propose radical surgery on the garrison which will then need discussion in OPD (K). MOD suspect that he is toying with this idea:

forward soon.

if so, better that he put it

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